Hello friends, help me with this. Now that i see, safaricom doing us same with prices as government owned monopoly Ethiotelecom, at least not big difference as i expected... This got me into thinking this... Letting slide possibilities from engineering point of view, I wanna know what'll happen to a new private company, if it provides better connectivity with exponentially cheaper prices from the business perspective? What's the next move of gov't/ethio telecom ? Will the company ever be considered as threat to them?
Jan 30, 2023Of course, it will be a threat. Creating a better service through diminished prices is a very impossible business model without a huge amount of profit that can be sustained through the huge initial loss. But if that is managed, then the business is a threat because not only is it sharing a market, it's also taking away demand. The next move of the government (legally) is unpredictable, but if I have to guess they will either: A. Buy out your business B. Improve their own services Hope this helped. Good Night!
Jan 30, 2023